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Case Study Chic Soap
Case Study Chic Soap
Case Study Chic Soap
The size of the total toilet soap market was around £190 million at retail. The top
quality premium soap market was estimated to be 7 per cent of the total which is
equivalent to £13.3 million.
m
er as
co
Variable cost Calculations:
eH w
o.
The below items are all the direct Material & labor cost that can be identified per unit.
Item
rs e £ cost per unit
ou urc
High quality packaging with the appropriate perfume design 0.14
base costs for a 150 gram bar 0.08
incorporating the perfume in the soap on a minimum annual quantity of 300,000
o
units 0.4
aC s
carriers to distribute the products to the customer average £0.50 per kilo 0.075
total 0.715
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ar stu
Item £
Th
https://www.coursehero.com/file/13743223/Case-Study-Chic-Soap/
Estimates:
Variable cost (more than 300,000 units)= £0.715 per unit.
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Contribution Margin (CM) = 1.72(U.P.) –
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0.715(U.V.C.) = £1.005 Per Unit.
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eH w
Contribution Margin% (CM%) = 1.005/1.72=
o.
59%.
rs e
ou urc
No of Units N:
1.72*N = Million£1.33 = 768,786 Units
o
Break-even Analysis:
aC s
vi y re
Total profit:
sh is
Th
https://www.coursehero.com/file/13743223/Case-Study-Chic-Soap/
What is the product benefit that you will be providing:
The product benefits is on offer could be:
High quality perfumes.
long lasting soap.
rich foaming.
Competitive price.
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er as
the product is packaged using the logo of the perfume plus a chic soap.
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eH w
the use of already established perfume concept to promote the soap.
access to the distribution achieved by the perfumes.
o.
rs e
The advertising in the women magazine.
ou urc
Gift pack for Christmas according to the market trend.
Sponsorship charities department related to women, like breast cancer NGO’s.
o
aC s
territories for distribution is the south eastern of England & the Large cities.
Whole sales, department stores & independent chemists.
ed d
ar stu
sh is
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